Virginia Tax Commissioner Issues Ruling on Broadband Service Provider’s Sales Tax Refund Request

The Virginia Tax Commissioner Sept. 18 issued a ruling regarding a broadband service provider’s request for a refund of retail sales and use tax related to equipment purchases. The Department granted a portion of the request because the taxpayer failed to show that it made retail sales of services as required by the existing Internet Service Provider (ISP) exemption policy. The taxpayer disputed the allocation percentage applied by the Department to its mixed-use equipment, the vendor certification form requirement, and the denial of interest paid on the refunds that were granted. The ruling determined that the taxpayer’s refund claim must ...